Bitcoin Whales Accumulate $636 Million Worth of BTC; Will It Break Its All-Time High?
On Tuesday, Bitcoin whales entered an aggressive accumulation phase, scooping up $636 million worth of BTC tokens.This massive whale activity came following a price surge for Bitcoin, which rose above $71,500 on Tuesday, May 21.
This increase in whale accumulation is likely a result of the Fear of Missing Out (FOMO) among investors who anticipate a significant surge after SEC spot ETH ETF approval.
According to an X post by co-founder of Apollo Thomas Fahrer, whales purchased 8,958 BTC tokens in a single day. In the last seven days, these whales have added an extra 12,058 BTC tokens to their portfolio, which, based on current market rates, is approximately $840.32 million.
One of the drivers of the recent surge is increased inflows to Spot Bitcoin ETFs. On Tuesday, a net inflow of $305.7 million was recorded for the Spot ETFs, with BlackRock's IBIT topping the charts.
While Bitcoin recorded a significant increase yesterday, its price has slightly pulled back, dropping to $70,000 as of 7:41 AM EST.However, despite the pullback, some analysts are still optimistic about its future price trajectory.
Well-known crypto analyst Ali Martinez predicted a notable surge for Bitcoin using the TD Sequential indicator on the one-hour chart.Based on his analysis, BTC is displaying a buy signal. Therefore, it will likely rebound in the coming days.
Ali told his X followers to watch out for key BTC supply zones between $70,180 and $70,600. Over 450,000 addresses acquired 273,000 BTC around this zone. He interpreted this as a buy signal, as the strong support levels move the odds in favor of the bulls.
In addition, Ali stated that the MVRV pricing bands reveal that Bitcoin is trading above $65,125. Therefore, the next rally for BTC before another correction could move it to approximately $77,593. Based on this analysis, Ali remains bullish on Bitcoin's chances despite the current price slump.
Will BTC Reclaim Its All-Time High?
Bitcoin has slipped below $70,000 as some traders seek to profit from its recent rally by selling their tokens. Nevertheless, BTC has found critical support at the $68,947 price level. However, it faces resistance at $70,925, and a break above this level will enable it to reclaim its all-time high.
Despite the decline, BTC is still trading close to the upper band of the Donchian Channel (DC), which is a bullish signal. This implies that the buyers are still active in the market and could revive the rally again in the coming days.
Also, the RSI indicator is in the buy zone at 61.49 but could soon enter the overbought region. Therefore, given the ongoing buy momentum, BTC will likely break above $70,925 in the coming days and reclaim the $73,750 all-time high.
However, remember that price volatility remains constant in crypto, and investors must conduct proper risk assessments before trading.
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